Long-Short Ratio
The index futures long-short ratio serves as a crucial sentiment indicator, reflecting market sentiment by comparing the number of bullish positions held by foreign institutional investors (FIIs) to their bearish positions. A low ratio suggests that FIIs are bearish on the Indian equity market, whereas a high ratio indicates bullish sentiment. Calculation of Long-Short ratio […]
What does the Nifty VIX Index really indicate?
What does VIX really indicate is best understood with an Example Let’s consider a recent example involving an Indian company to illustrate this concept of VIX more clearly. In April 2024, when Tata Consultancy Services (TCS) reported its Q4 FY24 earnings, the stock surged by over 4%. However, the value of its call options either fell […]
Deep Industries Stock Analysis
Deep Industries Limited is a company specializing in providing Air & Gas Compression Services, Drilling and Workover Services, Gas Dehydration Services, and also having expertise in Integrated Project Management Services. Deep Industries’ stock has given an aggregate return of around 50% in the last 6 months, and recently it posted a 44% growth in net […]
Profit Booking – What to Do after You Sell Your Stocks?
Last week, we sold the below 2 stocks from our portfolio: Exit Manappuram Finance @ Rs. 83.40 – Stock of the Month – Date of recommendation – 28 September 2015 @ Rs. 22.55), (Up 270%) Exit Time Technoplast @ Rs. 80.60 – Multibagger Ideas – (Date of recommendation – 29 June 2016 @ Rs. 49.15), (Up 64 %) One of the subscribers, who […]
Best Share Price for Range Trading
Over the past few months, I have seen a lot of preference among short term investors/ traders to look for stocks falling within a certain price range for trading. To be clear, there is no best share price for range trading. Period. Share price has nothing to do with the potential return you make on […]
Short Selling in Cash Market
What is Short Selling? In simple words – sell first and buy later. Short Selling – Selling of stocks that you do not own in your demat account. The goal is to profit from falling price of a stock (i.e. the trader is betting that the price of the security is likely to fall further […]
How to Earn Fixed Interest Income in Trading Accounts?
I wasn’t really sure of the title to this post but the idea stemmed out of a question that I received from a subscriber. Instead of repeating the exact question, I will break it up into 2: Can you earn fixed interest income on the spare cash lying in your trading account? Should you transfer […]
How to Succeed at Short Term Trading In Stocks
I have written about educated speculation in the stock markets (here) and about how to create an ideal streamlined portfolio of stocks for the long term (here). A topic I have never touched is short term trading in stocks. The irony is that this is what keeps me busy on a regular basis. If you […]
Is This Time To Go Short on Stocks?
If you read my previous posts you will know that usually I am not the one who recommends going short on stocks. Almost never! The big advantage of not being extremely dogmatic with how money making is done is that when opportunities are crystal clear you implement them: Why You Never Hear About Obvious Opportunities? The […]
Block Deals and Bulk Deals
Block Deal: A single trade of over 5, 00,000 shares or a trade where the total value in monetary terms is greater than or equal Rs. 5 Cr. Timing: The market participants are allowed to enter into block deals only during the first 35 minutes of the continuous trading session as the market opens i.e. from 9:15 am to […]